36202 Federal Register / Vol. 63, No. 127 /Thursday, July 2, 1998 / Notices

marketing of canned beets, carrots and

white potatoes. This will allow for a

more equitable marketing environment

for the canning industry.

Authority: 7 U.S.C. 1621–1627.

Dated: June 24, 1998.

Robert C. Keeney,

Deputy Administrator, Fruit and Vegetable

Programs.

[FR Doc. 98–17563 Filed 7–1–98; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Food and Nutrition Service

National School Lunch, Special Milk,

and School Breakfast Programs;

National Average Payments/Maximum

Reimbursement Rates

AGENCY: Food and Nutrition Service,

USDA.

ACTION: Notice.

SUMMARY: This Notice announces the

annual adjustments to: (1) the ‘‘national

average payments, ‘‘the amount of

money the Federal Government

provides States for lunches, meal

supplements and breakfasts served to

children participating in the National

School Lunch and School Breakfast

Programs; (2) the ‘‘maximum

reimbursement rates,’’ the maximum per

lunch rate from Federal funds that a

State can provide a school food

authority for lunches served to children

participating in the National School

Lunch Program; and (3) the rate of

reimbursement for a half-pint of milk

served to nonneedy children in a school

or institution which participates in the

Special Milk Program for Children. The

payments and rates are prescribed on an

annual basis each July. The annual

payments and rates adjustments for the

National School Lunch and School

Breakfast Programs reflect changes in

the Food Away From Home series of the

Consumer Price Index for All Urban

Consumers. The annual rate adjustment

for the Special Milk Program reflects

changes in the Producer Price Index for

Fluid Milk Products. These payments

and rates are in effect from July 1, 1998

through June 30, 1999.

EFFECTIVE DATE: July 1, 1998.

FOR FURTHER INFORMATION CONTACT:

Robert M. Eadie, Chief, Policy and

Program Development Branch, Child

Nutrition Division, FNS, USDA,

Alexandria, Virginia 22302, (703) 305–

2620.

SUPPLEMENTARY INFORMATION: This

action is not a rule as defined by the

Regulatory Flexibility Act (5 U.S.C.

601–612) and thus is exempt from the

provisions of that Act.

In accordance with the Paperwork

Reduction Act of 1995 (44 U.S.C. 3507),

no new recordkeeping or reporting

requirements have been included that

are subject to approval from the Office

of Management and Budget.

This action is exempted from review

by the Office of Management and

Budget under Executive Order 12866.

National School Lunch, School

Breakfast and Special Milk Programs are

listed in the Catalog of Federal Domestic

Assistance under No. 10.553, No. 10.555

and No. 10.556, respectively, and are

subject to the provisions of Executive

Order 12372, which requires

intergovernmental consultation with

State and local officials. (See 7 CFR Part

3015, Subpart V, and the final rule

related notice published at 48 FR 29114,

June 24, 1983.)

Background

Special Milk Program for Children

Pursuant to section 3 of the Child

Nutrition Act of 1966, as amended (42

U.S.C. 1772), the Department announces

the rate of reimbursement for a half-pint

of milk served to nonneedy children in

a school or institution which

participates in the Special Milk Program

for Children. This rate is adjusted

annually to reflect changes in the

Producer Price Index for Fluid Milk

Products (Code 0231), published by the

Bureau of Labor Statistics of the

Department of Labor.

For the period July 1, 1998 to June 30,

1999, the rate of reimbursement for a

half-pint of milk served to a nonneedy

child in a school or institution which

participates in the Special Milk Program

is 13.00 cents. This reflects an increase

of 4.65 percent in the Producer Price

Index for Fluid Milk Products (Code

0231) from May 1997 to May 1998 (from

a level of 135.4 in May 1997 to 141.7 in

May 1998).

As a reminder, schools or institutions

with pricing programs which elect to

serve milk free to eligible children

continue to receive the average cost of

a half-pint of milk (the total cost of all

milk purchased during the claim period

divided by the total number of

purchased half-pints) for each half-pint

served to an eligible child.

National School Lunch and School

Breakfast Programs

Pursuant to Sections 11 and 17A of

the National School Lunch Act, (42

U.S.C. 1759a and 1766a), and Section 4

of the Child Nutrition Act of 1966, (42

U.S.C. 1773), the Department annually

announces the adjustments to the

National Average Payment Factors and

to the maximum Federal reimbursement

rates for meals and supplements served

to children participating in the National

School Lunch Program. Adjustments are

prescribed each July 1, based on

changes in the Food Away From Home

series of the Consumer Price Index for

All Urban Consumers, published by the

Bureau of Labor Statistics of the

Department of Labor. The changes in the

national average payment rates for

schools and residential child care

institutions for the period July 1, 1998

through June 30, 1999 reflect a 2.75

percent increase in the Price Index

during the 12-month period May 1997

to May 1998 (from a level of 156.3 in

May 1997 to 160.6 in May 1998).

Section 704(b) of the Personal

Responsibility and Work Opportunity

Reconciliation Act of 1996, P.L. 104–

193, enacted August 22, 1996, amended

section 11(a)(3)(B) of the National

School Lunch Act (42 U.S.C. 1759a

(a)(3)(B)) and changed the method for

computing the annual adjustments to

the national average payment rates for

meals and supplements served to

nonneedy children. Effective July 1,

1997, the annual adjustments to the

payment rates for paid meals under

Section 4 of the National School Lunch

Act (42 U.S.C. 1753), and Section 4 of

the Child Nutrition Act of 1966 (42

U.S.C. 1773) and paid supplements

under Section 17(c) of the National

School Lunch Act (42 U.S.C. 1766(c)),

authorized under Section 11 (a)(3)(B) of

the National School Lunch Act, is

rounded down to the nearest whole

cent. The annual adjustments to the

Section 4 payments for free and reduced

price meals and to the Section 17(c)

payments for free and reduced price

supplements, were unchanged by P.L.

104–193 and are rounded up or down to

the nearest one-fourth cent.

Lunch Payment Levels

Section 4 of the National School

Lunch Act (42 U.S.C. 1753) provides

general cash for food assistance

payments to States to assist schools in

purchasing food. The National School

Lunch Act provides two different

Section 4 payment levels for lunches

served under the National School Lunch

Program. The lower payment level

applies to lunches served by school food

authorities in which less than 60

percent of the lunches served in the

school lunch program during the second

preceding school year were served free

or at a reduced price. The higher

payment level applies to lunches served

by school food authorities in which 60

percent or more of the lunches served
Federal Register / Vol. 63, No. 127 /Thursday, July 2, 1998 / Notices 36203

during the second preceding school year

were served free or at a reduced price.

To supplement these Section 4

payments, Section 11 of the National

School Lunch Act provides special cash

assistance payments to aid schools in

providing free and reduced price

lunches. The Section 11 National

Average Payment Factor for each

reduced price lunch served is set at 40

cents less than the factor for each free

lunch.

As authorized under Sections 8 and

11 of the National School Lunch Act (42

U.S.C. 1757, 1759a), maximum

reimbursement rates for each type of

lunch are prescribed by the Department

in this Notice. These maximum rates are

to ensure equitable disbursement of

Federal funds to school food authorities.

Meal Supplement Payments in

Afterschool Care Programs

Section 17A of the National School

Lunch Act (42 U.S.C. 1766a) authorizes

elementary and secondary schools to be

reimbursed for meal supplements as

part of the National School Lunch

Program if they meet the following

requirements: (1) operate school lunch

programs under the National School

Lunch Act; (2) sponsor afterschool care

programs; and (3) were participating in

the Child and Adult Care Food Program

as of May 15, 1989. The reimbursement

rates for supplements served in

Afterschool Care Programs under the

National School Lunch Program are the

same as the rates for supplements

served in centers under the Child and

Adult Care Food Program.

Breakfast Payment Factors

Section 4 of the Child Nutrition Act

of 1966 (42 U.S.C. 1773) establishes

National Average Payment Factors for

free, reduced price and paid breakfasts

served under the School Breakfast

Program and additional payments for

free and reduced price breakfasts served

in schools determined to be in ‘‘severe

need’’ because they serve a high

percentage of needy children.

Revised Payments

The following specific Section 4,

Section 11 and Section 17A National

Average Payment Factors and maximum

reimbursement rates for lunch, the afterschool supplement rates and breakfast

rates are in effect from July 1, 1998

through June 30, 1999. Due to a higher

cost of living, the average payments and

maximum reimbursements for Alaska

and Hawaii are higher than those for all

other States. The District of Columbia,

Virgin Islands, Puerto Rico and Guam

use the figures specified for the

contiguous States.

National School Lunch Program

Payments

Section 4 National Average Payment

Factors

In school food authorities which

served less than 60 percent free and

reduced price lunches in School Year

1996–97, the payments for meals served

are: Contiguous States—paid rate—18

cents, free and reduced price rate—

18.75 cents, maximum rate—26 cents;

Alaska—paid rate—30 cents, free and

reduced price rate—30.25 cents,

maximum rate—40 cents; Hawaii—paid

rate—21 cents, free and reduced price

rate—21.75 cents, maximum rate—30

cents.

In school food authorities which

served 60 percent or more free and

reduced price lunches in School Year

1996–97, payments are: Contiguous

States—paid rate—20 cents, free and

reduced price rate—20.75 cents,

maximum rate—26 cents; Alaska—paid

rate—32 cents, free and reduced price

rate—32.25 cents, maximum rate—40

cents; Hawaii—paid rate—23 cents, free

and reduced price rate—23.75 cents,

maximum rate—30 cents.

Section 11 National Average Payment

Factors

Contiguous States—free lunch—

175.50 cents, reduced price lunch—

135.50 cents; Alaska—free lunch—

284.25 cents, reduced price lunch—

244.25 cents; Hawaii—free lunch—

205.25 cents, reduced price lunch—

165.25 cents.

Meal Supplements in Afterschool

Care Programs—The payments are:

Contiguous States—free supplement—

53.25 cents, reduced price

supplement—26.75 cents, paid

supplement—4 cents; Alaska—free

supplement—86.25 cents, reduced price

supplement—43.25 cents, paid

supplement—7 cents; Hawaii—free

supplement—62.25 cents, reduced price

supplement—31.25 cents, paid

supplement—5 cents.

School Breakfast Program Payments

For schools ‘‘not in severe need’’ the

payments are: Contiguous States—free

breakfast—107.25 cents, reduced price

breakfast—77.25 cents, paid breakfast—

20 cents; Alaska—free breakfast—170

cents, reduced price breakfast—140

cents, paid breakfast—29 cents;

Hawaii—free breakfast—124.50 cents,

reduced price breakfast—94.50 cents,

paid breakfast—23 cents.

For schools in ‘‘severe need’’ the

payments are: Contiguous States—free

breakfast—127.75 cents, reduced price

breakfast—97.75 cents, paid breakfast—

20 cents; Alaska—free breakfast—203

cents, reduced price breakfast—173

cents, paid breakfast—29 cents;

Hawaii—free breakfast—148.25 cents,

reduced price breakfast—118.25 cents,

paid breakfast—23 cents.

Payment Chart

The following chart illustrates: the

lunch National Average Payment

Factors with the Sections 4 and 11

already combined to indicate the per

meal amount; the maximum lunch

reimbursement rates; the reimbursement

rates for meal supplements served in

afterschool care programs; the breakfast

National Average Payment Factors

including ‘‘severe need’’ schools; and

the milk reimbursement rate. All

amounts are expressed in dollars or

fractions thereof. The payment factors

and reimbursement rates used for the

District of Columbia, Virgin Islands,

Puerto Rico and Guam are those

specified for the contiguous States.

BILLING CODE 3410–30–U
36204 Federal Register / Vol. 63, No. 127 /Thursday, July 2, 1998 / Notices

BILLING CODE 3410–30–C
Federal Register / Vol. 63, No. 127 /Thursday, July 2, 1998 / Notices 36205

Authority: Sections 4, 8, 11 and 17A of the

National School Lunch Act, as amended, (42

U.S.C. 1753, 1757, 1759a, 1766a) and

sections 3 and 4(b) of the Child Nutrition

Act, as amended, (42 U.S.C. 1772 and 42

U.S.C. 1773(b)).

Dated: June 26, 1998.

George A. Braley,

Acting Administrator.

[FR Doc. 98–17675 Filed 7–1–98; 8:45 am]

BILLING CODE 3410–30–U

DEPARTMENT OF AGRICULTURE

Food and Nutrition Service

Child and Adult Care Food Program:

National Average Payment Rates, Day

Care Home Food Service Payment

Rates, and Administrative

Reimbursement Rates for Sponsors of

Day Care Homes for the Period July 1,

1998–June 30, 1999

AGENCY: Food and Nutrition Service,

USDA.

ACTION: Notice.

SUMMARY: This notice announces the

annual adjustments to the national

average payment rates for meals served

in child care, outside-school-hours care

and adult day care centers; the food

service payment rates for meals served

in day care homes; and the

administrative reimbursement rates for

sponsors of day care homes to reflect

changes in the Consumer Price Index.

Further adjustments are made to these

rates to reflect the higher costs of

providing meals in the States of Alaska

and Hawaii. The adjustments contained

in this notice are required by the

statutes and regulations governing the

Child and Adult Care Food Program

(CACFP).

EFFECTIVE DATE: July 1, 1998.

FOR FURTHER INFORMATION CONTACT:

Robert M. Eadie, Branch Chief, Policy

and Program Development Branch,

Child Nutrition Division, Food and

Nutrition Service, USDA, Alexandria,

Virginia, 22302, (703) 305–2620.

SUPPLEMENTARY INFORMATION: This

program is listed in the Catalog of

Federal Domestic Assistance under No.

10.558 and is subject to the provisions

of Executive Order 12372, which

requires intergovernmental consultation

with State and local officials. (See 7 CFR

Part 3015, Subpart V, and final rule

related notice published at 48 FR 29114,

June 24, 1983.)

This notice imposes no new reporting

or recordkeeping provisions that are

subject to Office of Management and

Budget review in accordance with the

Paperwork Reduction Act of 1995 (44

U.S.C. 3501–3518).

This action is not a rule as defined by

the Regulatory Flexibility Act (5 U.S.C.

601–612) and thus is exempt from the

provisions of that Act. This notice has

been determined to be exempt under

Executive Order 12866.

Definitions

The terms used in this notice shall

have the meanings ascribed to them in

the regulations governing the CACFP (7

CFR Part 226).

Background

Pursuant to sections 4, 11 and 17 of

the National School Lunch Act (NSLA)

(42 U.S.C. 1753, 1759a and 1766),

section 4 of the Child Nutrition Act of

1966 (CNA) (42 U.S.C. 1773) and

sections 226.4, 226.12 and 226.13 of the

regulations governing the CACFP (7 CFR

Part 226), notice is hereby given of the

new payment rates for participating

institutions. These rates shall be in

effect during the period July 1, 1998

through June 30, 1999.

As provided for under the NSLA and

the CNA of 1966, all rates in the CACFP

must be revised annually on July 1 to

reflect changes in the Consumer Price

Index (CPI) for the most recent 12-

month period. In accordance with this

mandate, the Department last published

the adjusted national average payment

rates for centers, the food service

payment rates for day care homes and

the administrative reimbursement rates

for sponsors of day care homes on July

14, 1997 at 62 FR 37702 (for the period

July 1, 1997–June 30, 1998).

Section 704(b) of the Personal

Responsibility and Work Opportunity

Reconciliation Act of 1996, Pub. L. 104–

193, amended section 11a(3)(B) of the

NSLA (42 U.S.C. 1759a(a)(3)(B)) and

changed the method for computing the

annual adjustments to the national

average payment rates for meals and

supplements served to non-needy

children in day care centers. Beginning

July 1, 1997, the annual adjustments to

the payment rates for paid meals and

paid supplements were rounded down

to the nearest whole cent. The annual

adjustments to the payments for free

and reduced price meals and to the

payments for free and reduced price

supplements were unchanged by Pub. L.

104–193 and continue to be rounded up

or down to the nearest one fourth cent.

Section 708(e)(1) of Pub. L. 104–193

also amended section 17(f)(3)(A) of the

NSLA to establish two ‘‘tiers’’ of day

care homes and reimbursement rates.

Tier I homes are homes located in lowincome areas or homes in which the

provider’s household income is at or

below 185 percent of the Federal

income poverty guidelines. Tier II

homes are those homes which do not

meet the location or provider income

criteria for a tier I home. However, tier

II homes may receive the tier I rates for

meals served to identified incomeeligible children (i.e. children from

households with incomes at or below

185 percent of the Federal income

poverty guidelines).

Pub. L. 104–193 further specified in

section 17(f)(3)(A)(ii) (III) and (IV) the

reimbursement factors for meals served

in tier I day care homes as the factors

in effect on July 1, 1996, with

adjustments made to the factors on July

1, 1997, and each July 1 thereafter. Pub.

L. 104–193 further provided in section

17(f)(3)(A) (ii)(IV) and (iii)(I)(bb) (42

U.S.C. 1766(f)(3)(A) (ii)(IV) and

(iii)(I)(bb)) of the NSLA that the factors

paid to tier I and tier II homes be

rounded down to the nearest whole

cent, instead of rounding the factors up

or down to the nearest quarter-cent

increment as previously required.

Subsequent adjustments must be based

on the unrounded rate from the

preceding school year. In addition,

annual adjustments, which were

previously based on changes in the CPI

for food away from home, must now be

made based on the CPI for food at home.

Please note that reimbursement rates

for tier II family day care homes are set

forth in section 17(f)(3)(A)(iii)(I)(aa) of

the NSLA (42 U.S.C.

1766(f)(3)(A)(iii)(I)(aa)), as amended by

section 708(e)(1) of Pub.L. 104–193.

After these reimbursement rates were

adjusted and rounded down to the

nearest whole cent as required under

the law, an additional six cents was

added to the breakfast rate as required

by section 4(b)(3) of the CNA of 1966,

as amended (42 U.S.C. 1773(b)(3)). The

CNA requires that all reimbursement

rates for breakfasts served under the

School Breakfast Program and the

CACFP be adjusted upward by six cents.

As background, this addition was first

made in 1986, under Pub. L. 99–500, the

School Lunch and Child Nutrition

Amendments of 1986, which added

three cents to adjusted breakfast rates to

assist States in improving the

nutritional quality of the breakfasts.

This adjustment was raised from three

cents to six cents in 1989 under Pub. L.

101–147, the Child Nutrition and WIC

Reauthorization Act of 1989, for the

same reason.

The payment rates for the period July

1, 1998–June 30, 1999 are: